5.6. EDSR 07-14-2008 - Laserfiche WebLink

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i*.^ ~T1 ,,i, o f ~~w.~;, `+~ ~ * ~~ 1 i ~~ C r} w n i ,Mfih > i 1. ` ~~ _, G MARKET INDICATORS Q108 Q2 OS Actual Estimated VACANCY RATE JI ~ NET ABSORPTION ~ T CONSTRUCTION y T RENTAL RATE -~ ~ SIGNIFICANT TRANSACTION ~~~~ Normandale Tech Center Bloomington, MN Size: Ib1,368 SF Seller: First Industrial Buyer: Frauenshuh Inc. Price: $10,337,000 TURLEY MARTIN TUCKER ~~ Commercial Real Estate Services 11~'':r% ~~ ~4 „ iii ~'~ tyr r a ~= t INDUSTRIAL ( FIRST QUARTER ~ 20Q8 March Madness Onii.nous signs ctrntinue, as tl~e new year ltas atarted off ort a slow note Eor the 'Iivin Cities industrial market. !Absorption is nenative, for the first ii~.iarter. TI~>e number of spaces on the market: that are vacant, and the size of~ those spaces, are increasing. The askin~~ prices for bttddings tan die market for sale ate coming down, and manufacturing continues to have. negative. jot: growth. hirst let's Iook at the increasing amounts of space drat are becoming available. In ?006 d~>ere were fewer than 500 s}?aces available ~~ith less than 40,000 ~T ivailable in coral. There were just over 150 between 40,000 and 100,000 tiH and (i5 spaces over 100,000 S1= metro wide. 1~ast forward two years. 'The s>nall user space is up by L3°./~, the tuediu~m urcr apsice is up by 7.0%> and the large user apace is up by a ~~hopping 45°,'0. An en erging trend to keep an eye on in tl~>e near future is the dedii~le of uidustrial sale prices. In the past 12 months about IO°/v of YEAR <40,000 40,000 - 100,000 >100,000 2006 497 153 65 2007 533 160 67 2008 564 169 94 rl-lose properties listed for sale have ch-op}?ed their asking price; Iiy an average of 1~°,%, with sonic even dropping it over 50°4~. This could be an indicator of things to conic, as financing gets harder co conic by and some owners ~~rill need to sell. 'I'lu number of matiufactt.iring jobs in t:he Twin Cities continues to decline. There has been negakive year-over-year job growth fiir the past: 1.5 month.. $ut: on the plus side, there are two subsets of manufacturin~~ that have. had. positive, albeit small, growth recently. They are electronic instnimentation and medical device ma nu facto ring. J M 5 J M S J M S J M S J M S; J M S J M S J M 2001 2002 2003 2004 2005 2006 2007 2008 .... ~ S>i~. .~:a;ctr rn. .I i.;